TNAG-1844-FCO40-2619-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 67

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

BC MAR 189 18:12 FROU

1 TECH FADIZ

TO FCO NEWS

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TRANSCRIPT C HONG KONG SELECT COMMITTEE MEETING 22 MAR 89

TURNIG★ SEUKNJAKY (CORT):

They have had a whole range of familiarisation visitɛ

endeavouring to see what mkes Hong Kong tick for the sake of the

Juint Declaration and no doubt for wider reasons.

And that has been matched by the growth of Chinese

investment in Hong Kong. China may well now be the largest single

external investor in the Hong Kong economy. The Bank of China is

the second largest banking group in Hong Kong,

The China

International Trust and Investment Corporation has a 12.5 percent

stake in Cathay Pacific Airways. And of course when the Hong Kong

Future's Exchange was in trouble in 1987, the Bank of China

participated substantially in the rescue package for that.

And as you say, the New China News Agency has been there. It

has long bad extensive links with Hong Kong society which have

strengthened, and it has in that sence played some of the

functions that a large Embassy would traditionally play.

I think I can say that the number of Chinese officials who

came to Hong Kong in 1988 was 10,000 so it is a very substantial

luvolvement.

On the political groupinge, there is no evidence that the

Chinese oppose the trend towards formation of political groupinge

because they are seen, I think, as being in accordance with the

Right of Association which is identified in the draft Basic Law.

But quite in what way and on what scale they will develop I think will depend upon the perceptions of the people of Hong Kong.

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